>> hi, everybody. welcome to the "wall street journal report." i'm maria bartiromo . the unemployment rate better than expected. what does it mean for your money? we will find out from the man who is anything but a fool. my conversation with one of the richest men in the world world larry ellison. how he is spending his billions and his friendship with steve jobs. >> he was our edison, our picasso. are you saving enough for retirement? how to boost your bottom line if you are nearing the magic number. the "wall street journal report" begins right now. >> this is america's number one >> this is america's number wall street journal report." now maria bartiromo . here's a look at what is make making news as we head to a new week on wall street a crucial report came in better than expected. the september jobs report showed the unemployment rate fell to

7.8%. the best number since january of 2009. the economy created 114,000 new jobs for the month in line with what economists were looking for and job creation numbers for the d upward. after a mixed start to the week the markets bounced back after positive economic data and what some called a romney rally following the presidential debate. the market was mixed on friday. the the auto sales are powering . on an annualized basis, sales hit 15 million units. the best number since march of 2008. gm and ford posted flat numbers but chrysler, toyota and volkswagen were strong. a major milestone for facebook. the social website passed the -- the stock is down 38% 40%.

there's no such thing as a foolish question about money, the markets or the economy. so says my next guest tom gardner, ceo of "the motley fool." thank you for joining us. >> thank you for having me. >> we got the numbers out on friday showing 114,000 new jobs created for the month. the unemployment rate the lowest in 3 1/2 years 7.8%. were you surprised by the numbers? what do you think it tells us where we are in the recovery. >> this is good news, no question. i think there are a couple of things to remember. first you get the context. we're 7.8% unemployment. historically over the last 60 years it has been 5.8%. two percentage points above where we would like to be. the other thing is where are the jobs coming from? health care is healthy, manufacturing is not. i think that will continue to be true. american workers need to understand we are moving to a

knowledge economy, technology, solutions and services and not product. there is that shift in the work force, as well. the markets neared multiyear highs this week. do you think it continues to go up and do you think this is a post-debate romney rally? >> i don't know how much the debate influences the markets overall. i think that for long-term toward like us at the motley fool this is a fine time to be an investor. of course we generally think that. we like to add money every month. one of the worst things that happens and a lot of discussion on the macro issues the crisis that come along on wall street and the high-frequency trading that makes people think they have to pay attention on second-by-second basis. a lot of retail toward have been pushed out of the market or withdrawn their capital. i think that is a mistake. i think you want to be in equities, more than ever before over the last ten years if you look at the performance of stocks. . i hope retail toward watching

this program are thinking of getting more in to mutual funds, equity and low-cost funds and stocks of businesses they believe in. >> part of the reason for the rally we have been seeing the momentum in the stock market is because of the federal reserve. this week the fed released the minutes from the last meeting which it announced a plan to buy $40 million of mortgage-backed securities every month until the labor market improves. are you surprised by anything in the minutes? >> you need to do three things to get out out of the deleveraging process. you need to print capital and have cuts in spending that are meaningful and then you have to raise taxes and close loopholes. you have to have all three working in concert to deleverage out of the system we are in. $40 billion makes sense to me. q with e 3 makes sense to me up to a point. i noted in the minutes that i would read from the minutes that if unemployment is above say 6 1/2% and inflation is below 3%

you are going to see qe-3 from one month to the next. once you get close to the numbers i think they will shut it down. $40 billion a month will inflate the monetary supply by 15% a year. that's not something we are accustom to seeing. we are deleveraging. at some point inflation creeps in to the process. what about the civil suit that we saw? we saw a civil suit by new york state attorney general against jpmorgapapmorgan chase. they are alleging fraud in the bear sterns business in the sale of mortgage-backed securities in 2008. first, do you think this is a day late and dollar short and is it fair to target jpmorgan chase since they were forced to acquire the company during the financial crisis? it. >> is always tough when a parent has to pay for the penalties of a subsidiary, of an acquisition. this case one that was forced upon them. at the same time i think it is ram nant the industry. i don't think it is a day late

or a dollar short. it is a couple of days late and more than a few dollars short. for an investor i think you stay away from wall street all together. you get your low-cost index funds from a company like vanguard and do it yourself, inexpensively and build over the long term. i would say the average investor out there should double their holding period if it is two years it should be four years. if it is five years it should be ten years. but that fits in a category of stay away from wall street. i don't think that wall street has anything to add. >> you want to be in equities for the long term. where do you want to be then? where should toward allocate money right now? >> look at the major trends out there in the world and buy in to them. a company i love is linkedin. it is transtransforming recruiting and we see so much focus on employment in the world and linked in has a network

model behind it. so much recruiting ten years from now, new jobs and upgrades in people's career will come to a connection to linkdin. starbucks is another stock that i own and the motley fool owns. starbucks at $50 a share i couldn't buy enough of this for somebody who's looking to invest and hold it more than five years. if you are in for three months or three weeks we don't have much to offer in terms of advice but long-term business-focused toward those are the companies you want to invest in. >> good i stuff. thank you so much. tom gardner joining us here on the "wall street journal report." up next on the "wall street journal report," let me ask you about your own use of capital. . my conversation with one of the world's richest men. whether he is buying homes, private islands or other

countries. we will get larry ellison's rare take. and what boomers are doing to save for retirement and how the new normal changes the rules of the game p. as we go to break look at how the stock market ended the wook. embarrassed about my skin. [ designer ] enough of just covering up my moderate to severe plaque psoriasis. i decided enough is enough. ♪ [ spa lady ] i started enbrel. it's clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone -- and may not clear you completely, but for many, it gets skin clearer fast, within 2 months, and keeps it clearer up to 9 months. [ male announcer ] because enbrel®, etanercept, suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal, events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel,

your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. if you've had enough, ask your dermatologist about enbrel.

larry ellison is one of the richest men the world, a billionaire many times over. he's the founder, ceo and chairman of oracle a business software company. in a rare interview we talked about his friend the late steve jobs and the state of ark oracle's business today. >> our business is fairly good. our software business is groeg and part of our hardware business we care about most, engineered systems are growing

at over 100% rate. >> you have been a serial acquirer and the growth has shown throughout the deals you have done. where are the holes? where are the opportunities to grow in terms of the next acquisition? are you poised to do another deal soon? >> we are not planning any major acquisitions right now. we are focused on the fact over the last seven, eight years we have re-engineered our applications for the cloud. we think that is a huge opportunity for organic growth. >> you have upstarts trying to take market share. how will you ensure that enterprises out there are looking at oracle for that top-to-bottom solution. >> we have much more complete suite of applications in the cloud. we don't do just sales or marketing of automation we do accounting, financial planning, human capital management and talent management. all of those things. we have a complete suite of

applications in the cloud. that's something a small company can't do. >> let me ask you, i came across a lot of quotes preparing for the interview is one we write software not checks. >> good old quote. >> does that mean you are not considering raising the dividend. you are not going to do a big deal. how will you use the money? a dividend increase. >> we could do a dividend down the road. over the next couple of years senior management down to individual programmers and sales people are focused on one thing, selling applications in the cloud, selling our platform and infrastructure in the cloud. we are laser-like focus on that kind of organic growth and that future organic growth opportunity for us. a couple of years down the road we could look at a big acquisition again. so having a lot of cash in the bank is not a bad thing. my friend steve jobs had a lot of cash in the sglank i want to

ask about steve jobs. what steve jobs did, you have done for -- i know it hit you hard when he passed. >> he was my best friend for 25 years. he's just irreplaceable. irreplaceable in our industry and as my friend. >> do you think apple will have the innovations and the products in the pipeline going forward the way they did with steve jobs running it? >> i have great respect for the company and steve cook. but i will say it again, steve is irreplaceable. we have all lost something. he was our edison. he was our picasso. there's no one like him. apple will continue to thrive not like when steve was around. >> reporter: let me ask you about your own use of capital. allocation of capital. we know you have made tons of headlines buying an island in hawaii, lan nigh, homes.

how many homes do you own, 15, 11? >> homes that i live in or -- >> why to you buy homes if i don't live in them. >> i bought one in newport rhode island that i am concerting to an art museum. and i got this idea -- my favorite museums are things like the frick museum where it is someone's home that you walk through home an garden and you see the art in a very comfortable, natural setting on a much smaller more hue scale. >> reporter: the island of lanai. you love hawaii? >> i love hawaii and lanai is interesting project. there what we will do is turn lanai in to a model for sustainable enterprise. we are going to convert sea

water in to fresh water, and then have drip irrigation where we with will have organic farms all over the island. hopefully export produce, really the best organic produce to japan and elsewhere and the hawaiian islands. we will support the local people and help them to start these businesses. we will help electric cars. it will be a little, if you will, laboratory for sustainability. >> what happens now? . hundred billion plus. you have an enormous amount of personal wealth. do you pinch yourself? when you look back at your modest beginning it is extraordinary. >> it is extraordinary. steve and i used to talk about this a lot. both of us agreed, you know, every once in a while you stop and think of it, but 99.9% of

the time you get on with the miracle of life, just being alive every day and going out and doing your job and enjoying being alive. >> my thanks to larry ellison. up next on the "wall street journal report," why it is never too late to increase your personal financial literacy even if you are edging closer to retirement tips on finances, retirement and managing your bottom line. and follow us [ male announcer ] let's say you need to take care of legal matters.

wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. it's law that just makes sense. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

welcome back. 50 may be fabulous for learning something new. never too late to shore up your foundation. for more i am joind by carrie schwab pomerantz, president of the charles schwab organization. nice to have you on the show. >> woerndful to be here. >> 50 and fabulous. you are teaming with up with the aarp foundation targeting those over 50 who need to boost their financial confidence or are struggling to make ends meet. >> so we teamed up with the aarp foundation. let me paint a picture for you. 25% of americans are going to retire in the next 20 years. that's a quarter of the population. what we found through our research is that 20 million americans today are struggling to make ends meet. they are not even thinking of

retirement right now. so we think with this program, by giving them a little education and coaching, we can really make a difference in their financial lives. >> this is important because i think you go along in your career and you think, okay, i'm fine. i have must money in savings and retirement. next thing you know you turn around and you are 50 and thinking wait a second time approaching that time to retire. do i have the right tools in place? >> absolutely. time does go by. of course we were talking about how we feel 25 years old, but that is always got to get the word out to get people to start saving younger. at 50, 60 years old it is not too late. that's why we created the program with aarp. we had an elderly woman who is single living off social security and she learned she can get a credit report for free and save $25 a month and she made it automatic with her bank.

the bottom line is we have time and there is opportunity to create a ugs cushion for ourselves. >> a large percentage of the long-term unemployed are workers. talk to us about that. what are the challenges for the 50 plus age group. first of all, living within your means. talk about debt repair, credit repair and dressing your debt. it is about savings, preparing for retirement and protecting your assets. so it is really about building some type of nest egg for these people. >> are people in the baby boom generation postponing retirement? are they planning to postpone retirement? what to you hear from that age group in terms of those concerns. >> 50 is pretty young and the culture has changed where we baby boomers think we can concur the world. retirement comes in all shapes

and sooipz sizes. people are starting new businesses, taking on new hobbies. they are taking part-time jobs, doing volunteering. so you see a lot of that happening. but then again, given what has happened with the economy, people having to reassess. they don't have the options like they had. that's why we created this program to address this issue that people are ill prepared. and of course this program focuses on the at-risk population. but as you know so many americans all income levels are not prepared. let's do that focus us. what's the checklist or the steps we need to be aware of in terms of assessing retirement savings, assessing where we are for potential will income. >> at charles schwab we found through all of our research there is a large percentage of people that don't plan for retire and those that are in retire wish they planned better. take a step back and assess your

situation. how much money do you have now? how much do you need? how will you fill that gap? make a plan for that. i highly recommend seeing a financial adviser. i had my financial adviser. it is usually critical to your success. a lot of people don't have an emergency fund. for a younger person, three to six months of cash to cover expenses is really important. if you are five years from retirement you should have one year's worth of cash to cover expenses. >> often times you think of retiring but it is not necessarily the traditional retirement. you may start a business or do something else. retirement at 65 you still have 30 more years to live. it is not about selling stocks and putting them in bonds. you should have 20% stocks to outperform inflation. >> great to see you. >> thank you so much.

>> appreciate the advice. next, a look at the news that will have an impact on your money and parenting trend that is spot on for start up nation. back in a moment. a crash managem and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. n you take a closer look... ...at the best schools in the world...

...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. [ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪

you can find out more about the show and video of our interviews on our website wsjr.cnbc.com. a look at the stories in the week ahead that may impact your

money monday is the columbus day hole day. bank and bond markets will be closed. earnings season kicks off. companies reporting third quarter results include costco and jpmorgan chase. thursday the latest reading on the u.s. balance of trade. the vice presidential candidates take the stage for their one debate of the campaign season. also, thursday night. friday the price index is out. and a new addition to the tech industry has people talking. yahoo ceo marissa meyer welcomed her first child and she said he has not been officially named yet and suggestions are welcome. social media changed the way we communicate with friends and family and websites solicit ideas and parents from connections. is it is the wave of the future head to facebook and let

us know what you think. our name is wsjrwmaria. >> thank you for joining us. my guest next week, academy award winner matt damon will be with me and his latest development bringing clean water to the developing world. each week keep it here where wall street meets main street. i will see you next weekend. good morning! wow. want to start the day with something heart healthy and delicious? you're a talking bee... honey nut cheerios has whole grain oats that can help lower cholesterol. and it tastes good? sure does! right... ♪ wow. delicious, right? yeah. it's the honey, it makes it taste so... ♪ well, would you look at the time... what's the rush?

be happy. be healthy.